These Indicators Told You
You should scan TradingMarkets
Market
Bias Indicators Page for clues about what the major stock averages are
likely to do on any given day. While one individual indicator from the nine
signals scanned for daily on this page can give you a slight edge as to market
direction, three is considered a critical mass to give a larger-than-normal
edge. Today we have five indicators pointing down, which provided an even
stronger hint that the market could go down today.
The S&P 500 is down 11.82 at 1208.99, the Dow is down
87 at 10,463, and the Nasdaq is down 31.87 at 2055.51.
Make sure to check this page daily. Yesterday we had four
down signals on the Market
Bias Indicators Page as well. Over the past two days, seven of the nine
total signals on this page have flashed red, implying a selloff.
When a major average approaches a swing high or a swing
low, also check TradingMarkets Futures Indicators page for potential reversal
signals of the major markets’ highly correlated stock index futures contracts. Turtle Soup Plus One Buy
and Turtle Soup Plus One
Sell signals are scanned for daily in 30 major futures contracts, including
the closely watched
Nasdaq 100 futures
(
NDU1 |
Quote |
Chart |
News |
PowerRating),
S&P futures
(
SPU1 |
Quote |
Chart |
News |
PowerRating), and Dow futures
(
DJU1 |
Quote |
Chart |
News |
PowerRating).
If a stock index futures contract hits a new 20-day high
or a new 20-day low, and a 20-day high has not occurred within the past four
days, a reversal signal is indicated. Today we had a Turtle Soup Plus One
Sell signal in the S&P 500 futures
(
SPU1 |
Quote |
Chart |
News |
PowerRating), adding extra
weight to the Market Bias Indicators Page’s signals that we could go
down.
The Nasdaq has rallied the past few days on Merrill
Lynch’s upgrade of the semiconductor sector and on Intel’s president’s proclamation
that the worst is probably over for the PC industry, a sector which uses its
microprocessors. With no hot tips out from analysts — or industry chiefs
turned analysts — traders are taking profits on the recent chip-led
run-up in shares prices.
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) is down 2% at 31.43, dragging down both
the Dow and the Nasdaq.
Xilinx
(
XLNX |
Quote |
Chart |
News |
PowerRating), the most heavily weighted stock on the
semiconductor index
(
SOX |
Quote |
Chart |
News |
PowerRating), is the biggest-losing chip stock on the
bellwether Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating), down 1.84 at 41.50.
In the sectors, semiconductors
(
SOX |
Quote |
Chart |
News |
PowerRating), Internets
(
GIN |
Quote |
Chart |
News |
PowerRating),
and computer technology
(
XCI |
Quote |
Chart |
News |
PowerRating) are the biggest losers. No major index is up
by more than a fraction of a percent.
On the bull side, Engineered Support Systems
(
EASI |
Quote |
Chart |
News |
PowerRating)
has maintained a four-and-a-half week up-trend and is rising in an expansion bar
today on trade that is 30% greater than normal. Up 1.93 at 41.80, EASI stands
less than $1 off its all-time high. Unlike many other stocks, EASI, at new
highs, does not have overhead resistance that could encumber its ascent. The
stock also has strong price Relative Strength. Its six-month reading from
TradingMarkets Stock Scanner is 93, placing it the top 7% of price performers of
stocks over $10 that trade more than 300,000 shares daily.